1ST Quarter EPS Up 11% at Peoples Heritage.Business Editors PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Maine--(BUSINESS WIRE)--April 18, 2000 (Note: First Quarter Earnings Conference Call at 1:30 p.m. eastern time, today. Dial in 1-800-946-0783, confirmation code 394545. Replay number 1-888-203-1112, confirmation code 163353.) Peoples Heritage Financial Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : PHBK PHBK Self-Help Group Linkage Program PHBK Phone Book ) announced today operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $40.4 million, or 40 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the quarter ended March 31, 2000, up 11% on a per share basis over operating earnings of $37.6 million, or 36 cents per share, for the quarter ended March 31, 1999. On a net income basis, including branch closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, of $1.1 million (after tax) in the first quarter of 2000 and merger related and other special charges of $24.1 million (after tax) in the first quarter of 1999, the Company earned $39.3 million, or 39 cents per share, for the quarter ended March 31, 2000, up 200% on a per share basis from net income of $13.5 million, or 13 cents per share, for the quarter ended March 31, 1999. "Double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth in consumer and commercial lending in the first quarter of 2000 over the same quarter a year ago was the primary driver of earnings," said William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack J. Ryan Ryan may refer to: Places
"Market disruption Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. as the result of major
mergers and divestitures was clearly a factor in our commercial and
consumer loan growth."
Consumer loan balances, composed primarily of indirect automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of lending and home equity loans, were up 17% at March 31, 2000 over March 31, 1999. Commercial business loans were up 16% and commercial real estate loans were up 11% for the same period. Noninterest income, composed primarily of fee income from trust and investment services, insurance commissions from Morse, Payson Payson is the name of several places in the United States:
& Noyes Insurance, and mortgage banking and other customer service fees, was up 21% for the quarter ended March 31, 2000 over the same quarter a year ago. Noninterest income for the quarter ended March 31, 2000 was 24.4% of revenue, up from 22.5% for full-year 1999. The Company has set a goal of noninterest income reaching 30% of total income over the next three years. Noninterest expense for the quarter ended March 31, 2000 was down 24% from the same quarter a year ago but the reduction was the result of special charges, mostly merger related, in the quarter ended March 31, 1999. Exclusive of special charges, noninterest expense for the first quarter rose 6% over the same quarter a year ago and 2% over the previous quarter ended December December: see month. 31, 1999. Asset quality remained strong. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. as a percentage of total assets at March 31, 2000 were 0.40%, down from 0.48% at March 31, 1999. Nonperforming loans as a percentage of total loans at March 31, 2000 were 0.62%, down from 0.68% at March 31, 1999. Peoples Heritage Financial Group is a $13.8 billion multi-state banking and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. holding company headquartered in Portland, Maine Portland is the largest city in the U.S. state of Maine, with a 2004 population of 63,882. Portland is Maine's cultural, social and economic capital. Tourists are drawn to Portland's historic Old Port district along Portland Harbor, which is at the mouth of the Fore River and part . Pending final regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval, the Company plans to complete its merger of Banknorth Group, Inc., with assets of $4.5 billion, during the second quarter. Peoples Heritage will then change its holding company name to Banknorth, believing that the new corporate name is more indicative indicative: see mood. of its geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. presence in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. and upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. and more reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the Company's status as a commercial bank holding company. "Our balance sheet has long reflected that of a commercial bank although much of our roots are in the thrift thrift: see leadwort. industry," said Mr. Ryan. "We believe it is time for our holding company name to reflect that presence as a commercial banking company with a strong commitment to our northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. communities." The Company's banking subsidiaries are Peoples Heritage Bank in Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. and Bank of New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , each with its state's leading deposit market share, Family/SIS Bank in Massachusetts and Glastonbury Glastonbury, town, England Glastonbury (glăs`tənbərē), town (1991 pop. 6,751), Somerset, SW England. It has a leather industry, but Glastonbury is famous for its religious associations and many legends. Bank & Trust in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . The Company and its affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. banks also operate subsidiaries in trust and investments, insurance and leasing.
Peoples Heritage Financial Group, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31, %
(In thousands) 2000 1999 Change
Cash and due from banks $ 318,989 $ 325,053 -2%
Federal funds sold and other
short-term investments 76,566 151,383 -49%
Securities available for sale 4,999,905 4,133,343 21%
Securities held to maturity 522,632 -- N/A
Loans and leases held for sale 15,367 296,801 -95%
Loans and leases:
Residential real estate
mortgages 1,453,688 2,099,833 -31%
Commercial real estate
mortgages 1,828,637 1,647,042 11%
Commercial business loans and
leases 1,391,825 1,197,341 16%
Consumer loans and leases 2,483,879 2,123,251 17%
Total loans and leases 7,158,029 7,067,467 1%
Less: Allowance for loan losses 107,214 110,573 -3%
Loans and leases, net 7,050,815 6,956,894 1%
Premises and equipment 144,018 143,810 0%
Goodwill and other intangible
assets 110,298 121,401 -9%
Mortgage servicing rights 39,284 45,266 -13%
Bank owned life insurance 234,293 219,253 7%
Other assets 291,413 201,120 45%
$13,803,580 $12,594,324 10%
Liabilities & Shareholders' Equity
Deposits:
Regular savings $ 1,244,740 $ 1,300,211 -4%
Retail money market and NOW
accounts 2,264,863 2,062,179 10%
Retail certificates of deposit 3,250,695 3,440,780 -6%
Brokered deposits 124,169 204,815 -39%
Demand deposits 1,366,269 1,209,169 13%
Total deposits 8,250,736 8,217,154 0%
Borrowings from Federal Home Loan
Bank 3,596,968 2,809,865 28%
Securities sold under repurchase
agreements 924,896 519,801 78%
Other borrowings 17,466 24,340 -28%
Other liabilities 91,443 47,986 91%
Total liabilities 12,881,509 11,619,146 11%
Company obligated, mandatorily
redeemable securities of
subsidiary trust holding solely
parent junior subordinated
debentures 68,775 70,000 -2%
Shareholders' equity 853,296 905,178 -6%
$13,803,580 $12,594,324 10%
Peoples Heritage Financial Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except number of Three Months Ended March 31, %
shares and per share data) 2000 1999 Change
Interest and dividend income $ 241,069 $ 210,248 15%
Interest expense 130,735 102,310 28%
Net interest income 110,334 107,938 2%
Provision for loan and lease
losses 2,815 3,565 -21%
Net interest income after
provision for loan and lease
losses 107,519 104,373 3%
Noninterest income:
Customer services 14,505 10,812 34%
Mortgage banking services 2,998 4,205 -29%
Trust Income 3,701 3,467 7%
Investment advisory services 1,589 978 62%
Insurance commissions 5,279 5,282 0%
Bank owned life insurance 4,299 2,308 86%
Net gains on sales of securities 9 18 -50%
Other noninterest income 3,166 2,364 34%
35,546 29,434 21%
Noninterest expense:
Salaries and employee benefits 43,232 40,170 8%
Data processing 6,440 7,006 -8%
Occupancy and equipment expense 13,059 11,756 11%
Distributions on securities of
subsidiary trust 1,558 1,986 -22%
Amortization of goodwill &
deposit premiums 2,966 2,968 0%
Special charges (1) 1,583 33,235 -95%
Other noninterest expense 15,558 13,883 12%
84,396 111,004 -24%
Income before income tax expense 58,669 22,803 157%
Income tax expense 19,364 9,309 108%
Net income $ 39,305 $ 13,494 191%
Weighted average shares
outstanding:
Basic 101,287,535 103,429,129 -2%
Diluted 101,811,677 104,851,511 -3%
Earnings per share:
Basic $ 0.39 $ 0.13 200%
Diluted $ 0.39 $ 0.13 200%
Operating Financial Data
Operating non-interest expense (2) $ 82,813 $ 77,769 6%
Operating net income (3) $ 40,380 $ 37,573 7%
Basic operating earnings per
share (3) $ 0.40 0.36 11%
Diluted operating earnings per
share (3) $ 0.40 $ 0.36 11%
(1)Consists of branch closing costs of $1,583 for the quarter
ended March 31, 2000 and merger related charges of $25,871 and costs
to discontinue the correspondent mortgage business of $7,364 for the
quarter ended March 31, 1999.
(2)Excludes pre-tax special charges of $1,583 and $33,235 for the
quarters ended March 31, 2000 and 1999, respectively.
(3)Excludes post-tax special charges of $1,075 and $24,079 for the
quarters ended March 31, 2000 and 1999, respectively. NM Not
meaningful
Peoples Heritage Financial Group, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands, except number of
shares and per share data) Three Months Ended March 31,
2000 1999
Net interest income $ 110,334 $ 107,938
Net income $ 39,305 $ 13,494
Operating net income (1) $ 40,380 $ 37,573
Shares outstanding (end of period) 101,489,694 104,099,804
Weighted average shares outstanding:
Basic 101,287,535 103,429,129
Diluted 101,811,677 104,851,511
Earnings per share:
Basic $ 0.39 $ 0.13
Diluted $ 0.39 $ 0.13
Operating earnings per share (1):
Basic $ 0.40 $ 0.36
Diluted $ 0.40 $ 0.36
Operating cash earnings per
share (2):
Basic $ 0.43 $ 0.39
Diluted $ 0.43 $ 0.39
Shareholders' equity $ 853,296 $ 905,178
Book value per share $ 8.41 $ 8.70
Tangible book value per share $ 7.32 $ 7.53
Ratios:
Net interest margin (net interest
income as a % of average earning
assets) (3) 3.49% 3.86%
Net interest spread (yield on
earning assets minus yield on
interest-bearing liabilities) (3) 3.03% 3.36%
Return on average assets 1.15% 0.45%
Operating return on average
assets (1) 1.18% 1.25%
Operating cash return on average
assets (2) 1.28% 1.37%
Return on average equity 18.88% 6.19%
Operating return on average
equity (1) 19.40% 17.23%
Operating cash return on average
equity (2) 24.05% 21.60%
Tier 1 leverage capital ratio at
end of period 6.75% 7.07%
Efficiency ratio (4) 55.70% 55.17%
Non-performing loans $ 44,182 $ 48,191
Total non-performing assets $ 55,287 $ 60,105
Non-performing loans as a % of
total loans 0.62% 0.68%
Non-performing assets as a % of
total assets 0.40% 0.48%
Full service banking offices 213 221
(1)Excludes special charges of $1,075 and $24,079 after tax for
the quarteres ended March 31, 2000 and 1999, respectively.
(2)Earnings before special charges and amortization of goodwill
and core deposit premiums.
(3)Adjusted to fully taxable equivalent basis.
(4)Excludes distributions on securities of subsidiary trust, net
gains on sales of securities and special charges.
Peoples Heritage Financial Group, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (Unaudited)
Three Months Ended March 31,
2000 1999
Average Yield/ Average Yield/
(Dollars in Thousands) Balance Rate Balance Rate
Assets
Loans and leases (1)
Residential real estate
mortgages $ 1,462,814 7.31% $ 2,556,325 7.36%
Commercial real estate
mortgages 1,820,345 8.88% 1,653,097 9.05%
Commercial loans and
leases 1,302,395 8.84% 1,139,847 9.17%
Consumer loans and
leases 2,425,053 8.40% 2,127,014 8.59%
7,010,607 8.38% 7,476,283 8.36%
Securities 5,619,683 6.73% 3,583,507 6.05%
Federal funds sold & other
short-term investments 66,454 5.43% 186,465 3.96%
Total earning assets 12,696,744 7.63% 11,246,255 7.55%
Nonearning assets 1,020,030 912,961
Total assets $13,716,774 $12,159,216
Liabilities & Shareholders'
Equity
Interest-bearing deposits:
Regular savings $ 1,233,945 2.06% $ 1,283,505 2.04%
Retail money market and
NOW accounts 2,174,872 2.66% 2,036,837 2.39%
Retail certificates of
deposit 3,211,625 5.03% 3,449,865 5.16%
Brokered deposits 131,563 6.15% 211,412 5.05%
Total interest-bearing
deposits 6,752,005 3.74% 6,981,619 3.77%
Borrowed funds 4,678,559 5.83% 2,923,476 5.18%
Total interest-bearing
liabilities 11,430,564 4.60% 9,905,095 4.19%
Demand accounts 1,298,604 1,235,688
Other liabilities 81,734 46,166
Minority interest 68,775 88,000
Shareholders' equity 837,097 884,267
Total liabilities, minority
interest and shareholders'
equity $13,716,774 $12,159,216
Net earning assets $ 1,266,180 $ 1,341,160
Net interest income
(fully taxable equivalent) $ 110,869 $ 108,402
Less: fully taxable
equivalent adjustments (535) (464)
Net interest income $ 110,334 $ 107,938
Net interest rate spread
(fully taxable equivalent) 3.03% 3.36%
Net interest margin
(fully taxable equivalent) 3.49% 3.86%
(1)Loans and leases include portfolio loans and leases, loans held
for sale and nonperforming loans.
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